Blockchain analysis company IntoTheBlock pointed out in an article published on Sunday (23rd) that there are intriguing differences between long-term holders of Bitcoin (BTC) and long-term holders of Ethereum (ETH). Data shows that long-term holders of Bitcoin began selling in January of this year, while long-term holders of Ethereum continued to accumulate coins, which is in sharp contrast to their similar behavior in the previous cycle.
Changes in balances held by long-term holders of BTC and ETH, source: IntoTheBlock
IntoTheBlock explains that long-term holders will begin to sell the assets they have accumulated over the long term as prices rise. This profit-taking behavior often begins in the early stages of a bull market and continues beyond the peak of the cycle. Monitoring this activity can help More accurate estimates of market peaks.
Given Bitcoin's significant impact on the rest of the market, it is often the asset with which to measure these cycles most directly, as other cryptocurrencies tend to follow Bitcoin's movements. However, data tracked by IntoTheBlock shows that long-term ether holders have taken a different path from Bitcoin this year.
IntoTheBlock believes that this shift may be due to the emergence of many income opportunities in Ethereum, making it more profitable to hold Ethereum. The platform went on to write:
“Currently, 27.5% of the total ETH supply is staked, with 16.3% of pledged ETH being re-staked through protocols like Eigenlayer, highlighting the strong demand for native benefits from ETH holders.”
IntoTheBlock also stated that long-term Ethereum holders may be waiting for the approval of the Ethereum Spot ETF and a new all-time high before deciding to sell.
Nate Geraci, president of The ETF Store , said over the weekend that all issuers of U.S. Ethereum spot ETFs have submitted revised S-1 documents and are waiting for further comments from the U.S. Securities and Exchange Commission (SEC). Geraci believes that the Ethereum spot ETF is likely to be approved in the next two weeks, and Bloomberg ETF analyst Eric Balchunas predicts July 2 as a potential approval date.
